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Spain raises €3.52bn with 10-year bonds

SPAIN successfully borrowed €3.52bn in 10-year bonds yesterday. The 4.04pc interest rate demanded by investors compared with 3.855pc during a similar auction of bonds in March but showed no sign of renewed market nervousness over the euro.

Investors submitted offers worth €7.163bn, which was more than expected.

Traders said a lot of the buyers were domestic banks and funds.

Fears that Greece's debt crisis could engulf Spain and Portugal have hammered financial markets in recent months, pushing up Spanish and Portuguese borrowing costs and driving the euro to a four-year low.

After Spain's public deficit swelled to 11.2pc of output last year, the government committed to an austerity drive to slash the shortfall between its revenues and its spending to 3pc of GDP in 2013.

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